Solvi Enterprises Vs Additional Commissioner Grade 2 And 3 Others (Allahabad High Court)
In Solvi Enterprises Vs Additional Commissioner Grade 2 And 3 Others, the Allahabad High Court addressed a dispute concerning recovery actions taken against Solvi Enterprises. The Deputy Commissioner of State/Commercial Tax issued recovery notices to multiple banks after dismissing an appeal by the petitioner against an order dated 24.01.2022. The petitioner argued that no prior notice or intimation was given before this action, and an amount of Rs. 33 lakhs had already been recovered from one bank account while notices were still issued to other accounts for the same amount. The petitioner further highlighted the lack of a functioning GST Tribunal, which would have otherwise required only 10% of the disputed amount to be deposited under recent amendments. The court ordered the Deputy Commissioner to file a personal affidavit within three weeks, explaining the issuance of recovery notices to all banks and the failure to modify the DRC-13 after the partial recovery. The court also directed that no further coercive actions be taken, and the petitioner should be allowed to operate all its bank accounts until further notice, acknowledging the ongoing lack of a GST Tribunal and the premature enforcement actions taken by the tax authorities.
